The Indonesian gas project, which was implemented by the Japanese company Inpex and was repeatedly postponed for many years, has received government approval to start work on it, according to an official from the Ministry of Energy.

The Indonesian gas project receives government approval after being postponed for years

The investment cost of the project is estimated at about $20 billion, and it works to extract gas in offshore fields and launch a liquefied natural gas station, according to reports seen by the specialized energy platform.

The Japanese company leads the consortium that is implementing the Indonesian Abadi Masela gas project, according to Reuters, today, Saturday, December 2, 2023.

The implementation of the project was postponed for many years for many reasons. Among them are related to amendments made by the government to contracts concluded with the Japanese company.

The date of operation of the Indonesian gas project

The Indonesian gas project, which was approved by the government after developing its plan, will start operating in 2029, said Director General of Oil and Gas at the Ministry of Energy, Tutoka Ariadji.

According to the plan, the LNG project section will produce about 9.5 million tons annually, or the equivalent of 150 million cubic feet per day of natural gas. The project also produces about 35 thousand barrels of condensate per day.

The Japanese company, which leads the coalition to implement the Indonesian gas project, presented the developed plan earlier this year (2023) after adding carbon capture activity and storage equipment to it.

Shell International completed the sale of 35% of its stake in the project last October. To the local companies Pertamina and the Malaysian Petronas, according to Reuters.

The project Location

Abadi Masila's Indonesian liquefied gas project is located in the east of the country, and is linked to the Abadi Masila offshore gas field in the Masila square in the Arafura Sea, according to a report by the NS Energy website about the project.

The report, which was seen by the specialized energy platform, indicated that the Japanese company, which is developing a similar project in Australia, accounts for 65% of the Indonesian gas project.

There have been several amendments to the project plan over the past years. The first plan was to build a floating liquefied gas station, then it was modified in 2019, to become a land-based liquefied gas station.

The first plan also targeted starting work and operation in 2027, and in the last plan it was postponed to 2029.

The gas field is located at a depth of between 400 and 800 square meters under the waters of the Arafura Sea. The production area covered by the contracts concluded in the square reaches 2,503 square kilometers.

The Japanese company won the contract for research and exploration in the region in a tender in 1998, then discovered gas in the field in 2000, and was forced to drill 9 wells to ensure the economic feasibility of the field’s production. The field's reserves are estimated at about 12 trillion cubic feet.

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